Bill Ackman’s Pershing Square Capital Management (PSCM) has significantly increased its exposure to the “Magnificent Seven” stocks, including a new stake in Microsoft (MSFT), which Ackman disclosed on X. As of the end of Q1 2026, PSCM’s portfolio heavily features Amazon, Alphabet, and Meta Platforms, collectively comprising nearly 40% of its assets. Ackman believes the current market conditions, characterized by rising index ownership and heightened capital allocations from leveraged investors, have created attractive entry points for these stocks.
Microsoft’s stock has faced challenges, including a 23% decline in Q1, but Ackman sees value, noting its trading at 21 times forward earnings—aligning with the market average. He highlights the strength of Microsoft’s 365 and Azure franchises, which drive around 70% of earnings, and points to its significant stake in OpenAI as a hidden asset that could enhance its valuation.
For market professionals, Ackman’s bullish stance on Microsoft suggests a potential buying opportunity, especially given the company’s resilience in the enterprise sector and its strategic positioning in AI and cloud services.
Source: fool.com